Scorpio Tankers Inc. · NYSE:STNG
Scorpio Tankers — Q1 2013 Earnings Presentation
17 slides from Scorpio Tankers's earnings presentation, Apr 29, 2013
Slide 1: Scorpio Tankers, Inc. – Q1 2013 Conference Call
1 Scorpio Tankers, Inc. – Q1 2013 Conference Call April 29, 2013
Slide 2: Disclaimer
Disclaimer COMPANY OVERVIEW 2 This presentation contains certain statements that may be deemed to be “forward-looking statements” within the meaning of applicable federal securities laws. All statements, other than statements of historical facts, that address activities, events or developments that
Slide 3: Scorpio's Newest Vessels Outperform
SCORPIO’S NEWEST VESSELS OUTPERFORM Q1 2013 CONFERENCE CALL 3 For Q1, STNG reported MR “Time Charter Equivalent” results of $20,726/ day for ‘owned’ vessels and $16,453/ day for ‘time-chartered in’ vessels. In addition, for vessels employed in the Scorpio MR Tanker Pool, These vessels: Out-earned th
Slide 4: What Does the Raw Data on Fuel Efficiency Look Like?
WHAT DOES THE “RAW DATA” ON FUEL EFFICIENCY LOOK LIKE? Q1 2013 CONFERENCE CALL 4 I. Fuel Consumption data is “Noisy”! a) Weather, current, sea state, depth of water b) Quality and properties of the fuel c) Condition of the vessel (ballast, laden, hull or propeller fouling?) II. Data is verified! Tim
Slide 5: Third Party Vessel Performance
THIRD PARTY VESSEL PERFORMANCE Q1 2013 CONFERENCE CALL 5 This is an excerpt of a performance report for a third party vessel on a short time-charter: Year Built Shipyard 2004 STX 2007 SLS 2007 STX 2007 3 Maj 2007 3 Maj 2007 3 Maj 2007 SPP 2009 HMD 2012 GSI 2012 GSI 2013 HMD Net of 3 tonnes per day f
Slide 6: New Vessel Performance
NEW VESSEL PERFORMANCE Q1 2013 CONFERENCE CALL 6 This is an excerpt of a performance report for STI Amber, also delivered during 2012 and undertaking a similar short time charter: Year Built Shipyard 2012 HMD 2012 HMD 2012 HMD 2012 HMD 2012 HMD Net of 3 tonnes per day for auxiliaries, the vessel con
Slide 7: The Economics of Fuel Efficiency on the Spot Market
THE ECONOMICS OF FUEL EFFICIENCY ON THE SPOT MARKET Q1 2013 CONFERENCE CALL 7 TC2(1) – A Benchmark Voyage for a MR Product Tanker: • World Scale 160(3); Flat Rate $16.30; 37,000 mt of Gasoline & Fixed Differentials(2) (1.6 x $16.3 x 37,000 + $40,189(2)) • Loading in Rotterdam for 2 Days (Consuming M
Slide 8: TC2 Voyage Comparison
TC2 VOYAGE COMPARISON (1) Q1 2013 CONFERENCE CALL 8 STI Garnet Vessel A (4) Eco Premium Yard/ Year of Construction HMD 2012 SLS 2007 $ % Gross Freight (WS 160(3) x 37,000 x $16.3 + Fixed Differentials(2)) $1,005,149 $1,005,149 Less: Broker Commissions $25,129 $25,129 Port Expenses (~$53K Rotterdam,
Slide 9: Fuel Savings Calculation
FUEL SAVINGS CALCULATION( 1) Q1 2013 CONFERENCE CALL 9 (A) (B) .(C). =(A x B x C) Consumption Knots Hours Days MT / Day (@ 13 Knots) Bunker Price Estimated Bunker Cost Nautical Miles + Leg Durations & Fuel Days (5% Sea Margin) Speed Duration Duration STI Garnet Vessel A $/ MT STI Garnet(1) Vessel A
Slide 10: What About a Different Baseline?
WHAT ABOUT A DIFFERENT BASELINE? Q1 2013 CONFERENCE CALL 10 Clarksons Publishes MR Routes and Earnings each week The ‘Clarksons MR’ is a 5-year old vessel which steams laden at 13.5 knots on 30 tonnes per day laden and steams in ballast at 12 knots on 25 tonnes per day MR TCE $/ day TCE Premium Clar
Slide 11: How Should One Think About This Fuel Efficiency Spread?
HOW SHOULD ONE THINK ABOUT THIS FUEL EFFICIENCY SPREAD? Q1 2013 CONFERENCE CALL 11 Observation #1: For refiners, “Bunkers” (otherwise known as “resid” or “HFO” or “380 cst”) is a relatively unattractive product for refiners: Simple Refining Margins 40.00 Crack Spread ($/ Barrel) 30.00 20.00 10.00 0.
Slide 12: Observations - Sulfur Limits
OBSERVATIONS - SULFUR LIMITS Q1 2013 CONFERENCE CALL 12 Observation #2: Regulations pertaining to sulfur are significant, and sulfur limits in fuels are falling in an uneven manner around the world: • At its 58th session in London in October 2008, the Marine Environment Protection Committee (MEPC) o
Slide 13: Observations – Emission Control Areas
OBSERVATIONS – EMISSION CONTROL AREAS Q1 2013 CONFERENCE CALL 13 In 2015, W. Coast Norway, • North America Coasts ECA-SOx August-12, MAX 1% might be .1% MAX SOx • US Caribbean ECA-SOx from Jan-14 • North America & US Caribbean ECA’s will also be ECA- NOx from 2016 Marine Gas OIL (MGO) Required at Be
Slide 14: Observations Cont'd
OBSERVATIONS CONT’D Q1 2013 CONFERENCE CALL 14 Observation #3: sulfur regulations are a significant tax on shipping! • Sulfur is expensive (and risky) for refiners to remove! • Sulfur is a natural lubricant! • Marine fuels are difficult to transport and store (both ashore and on ships). • As refinin
Slide 15: Some Typical Comments
SOME TYPICAL COMMENTS Q1 2013 CONFERENCE CALL 15 I. The Data Set is Small – It is noisy, but for us it is not small! II. The vessels are underpowered – Really??? Let’s go back to high school physics… III. Slow-steaming negates the benefits of fuel-efficient design – Absolutely! And everybody saves f
Slide 16: Summary
SUMMARY Q1 2013 CONFERENCE CALL 16 In summary, there are several advantages to a new fuel-efficient product tanker: a) Revenue benefits ($3,000/ day?, $4,000/ day?, more?) b) Cost benefits (Lower operating expenses, estimated at $500-$750/ day) c) Intangible benefits (Market preferences for a ‘green
Slide 17: www.scorpiotankers.com
———— STNG aie ConriO . i Tankers NYSE STI AMBER MAJURO HYUNDAI